CHKP enters Golden Cross for the first time since March 6th
Check Point Software Technologies Ltd. (CHKP) Technical Analysis Report for Jul 16, 2020 | by Techniquant Editorial Team
CHKP ended Thursday at 119.23 losing $1.15 (-0.96%), slightly underperforming the Nasdaq 100 (-0.7%). Trading up to $1.62 lower after the open, Check Point managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on July 10th, CHKP actually lost -2.36% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (CHKP as at Jul 16, 2020):
Thursday's trading range has been $2.20 (1.85%), that's slightly below the last trading month's daily average range of $2.91. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for CHKP.
Two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term. With its 50-day moving average crossing above its 200-day moving average, the market has entered a so-called "Golden Cross" for the first time since March 6th. Showing increasing upward momentum in the short and medium-term the "Golden Cross" is known to indicate a potential bull market on the horizon.
Buying could speed up should prices move above the close-by swing high at 120.88 where further buy stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Golden Cross" stand out. Its common bullish interpretation has been confirmed for Check Point. Out of 9 times, CHKP closed higher 55.56% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 66.67% with an average market move of 0.36%.